Tata Motors sets October 14 as record date for demerger of CV business – News Air Insight

Tata Motors has formally announced the record date for the proposed demerger of its commercial vehicles business as Tuesday, October 14, 2025. Those holding Tata Motors shares as of this date will be eligible to receive stock of the newly formed entity, TML Commercial Vehicles Ltd (TMLCV).

Under the approved scheme of arrangement, shareholders will receive 1 equity share of TMLCV (face value Rs 2 each) for every 1 share held in Tata Motors, effectively mirroring their current holding.

“We wish to inform you that the Company has fixed Tuesday, October 14, 2025 as the “Record Date” for the purpose of ascertaining the shareholders of the Company who shall be issued and allotted 1 (One) share of TMLCV (face value of INR 2/- each fully paid up), for every 1 (One) share of the Company (face value of INR 2/- each fully paid up),” the company said in its regulatory filing.

This demerger is part of a larger restructuring plan that involves Tata Motors Limited (the demerged entity), TMLCV (the resulting company), and Tata Motors Passenger Vehicles Ltd (TMPV, the amalgamating entity).

The scheme was sanctioned by the National Company Law Tribunal (NCLT), Mumbai Bench, and became effective from October 1, following regulatory approvals.

As part of the same scheme, Tata Motors has also fixed Friday, October 10, 2025, as the record date to identify debenture holders of specific non-convertible debentures (NCDs) to be transferred to TMLCV.Shares of TMLCV are proposed to be listed on both BSE and NSE.With TMPV officially amalgamated into Tata Motors and ceasing to exist as of October 1, the demerger sets the stage for a sharper business focus and potential value unlocking across the passenger and commercial vehicle segments.

In its latest commentary, domestic brokerage firm JM Financial pointed out that the demerger marks a key milestone, with the tentative record date being October 14, 2025, which has been confirmed.

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The brokerage firm also emphasised that the carve-out of the CV segment may lead to increased stock volatility, driven by the market’s rebalancing of PV-only valuation. The firm expects the new CV entity to be listed by early November, assuming all formalities are completed in time.

Following the update, shares of Tata Motors were trading 4% higher at Rs 707.70 on the BSE.

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